NY Times series on workers’ compensation neglects the other victim

The NY Times ran a series of articles that painted a grim picture of workers’ compensation fraud and abuse in New York State: everything from exaggerated medical reports on mild back pain to seriously injured workers who are trapped for months in a Kafkaesque nightmare of delays. . Many injured workers eventually stop fighting and are left without medical care or are forced to pay out of their own pockets.

But the Times completely overlooked the other victim: the New York businesses and nonprofits that pay the workers’ compensation bills. Regardless of what workers, doctors, and insurance companies do, employers always lose.

Whenever there is a claim, whether legitimate or fraudulent, the employer is stuck with inflated reserves that insurance companies set aside to cover costs. And claims are only a small part of the problem. Between 40% and 60% of employers are overcharged on their premiums due to “mods” (experience rating modifications), miscalculations, and more.

In today’s reformist society, there is an undercurrent of anti-business attitude. So there is little sympathy for corporations. But it’s not just companies that are affected. Many struggling organizations, schools, and hospitals are continually losing thousands of dollars due to overpayments. But that doesn’t appear on the cover.

Injured workers and shoddy insurance carriers are always the center of attention in the news. They are more fascinating than the stories of employers paying the bills and overcharging their premiums. Therefore, the Times does not report when we look at companies ‘workers’ compensation insurance premiums and find errors and omissions that lead to large reimbursements.

But employers who get reimbursements through Compensation Refund Co. don’t mind not publishing their photos in the New York Times. They are happy with the rewards of tens of thousands of dollars. Sometimes hundreds of thousands.

I’d like the Times to do an investigative report on the state of business in today’s economy. The 2008 reform of New York State workers’ compensation laws brought positive changes to the system. But not enough. As Kenneth Adams, chairman of the New York State Business Council, told the Times: “The state of New York, before reform, was one of the most expensive states in the country for workers’ compensation. premiums, the cost of workers’ compensation for most employers has fallen in line with the average for other states. But if you’re in the manufacturing industry, it can still be a significant cost. “

For their part, companies should get their own stimulus package, by mining overpayments of workers’ compensation insurance premiums for refunds, they could find themselves with five- or six-figure rebates … and save thousands. millions to taxpayers.